This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com.

https://www.wsj.com/articles/SB977524359494103994

Electronic Investor

Shop, Don't Drop

By

Kathy Yakal

Updated Dec. 25, 2000 12:01 a.m. ET

Order Reprints

Print Article

Text size

Edited by Randall W. Forsyth

I f you've been shopping for a personal computer this holiday season, or if you own shares in PC-related stocks, you don't have to be told that the market is a free-for-all now. With six of 10 American households already owning a computer, and no compelling need for most of them to trade up if they're mainly surfing the Web and doing e-mail, it's a buyer's market.

But no longer can you walk into any retailer and plunk down $800 for a decent basic PC or $1,300 for one with a bit more power for graphics, and know that one store's deal is about the same as the next's. Neither can you still assume that the manufacturers' online sites are pricier than the computer superstores.

We shopped for middle-of-the-road desktop systems on both manufacturers' sites and at the Websites for brick-and-mortar stores like CompUSA. We were looking for an 800MHz Pentium III desktop with at least a 10-gigabyte hard drive and 128 megabytes of random access memory, plus a CD-RW drive to record CDs (preferably with an additional CD-ROM drive). We also wanted a 17-inch monitor, and Windows ME as the operating system.

One advantage of the manufacturers' sites is that you can get a machine built to your specifications. At
Gateway
(www.gateway.com ), we were able to snare an Essential 866 for $1,204, after adding $80 to upgrade to 128MB of RAM, and $125 for a CD-RW. Gateway also threw in a Canon color inkjet printer.

Dell Computer
(www.dell.com ) had some specials available through December 18, including free ground shipping, a free printer, scanner or Webcam, and one year of MSN Internet access (which normally would cost $263). The Dimension L 800r 800MHz Pentium III fit the bill. From the base price of $899, we knocked off $50 by dropping back to a 10-gigabyte hard drive and added $60 for extra RAM. A 17-inch monitor was $110, and a CD-RW drive, $99. Dell threw in a Lexmark Z32 printer as a limited-time offer. Total: $1,118.

The site run by
Hewlett-Packard
(www.hp.com ) was our least favorite among those run by the major PC manufacturers. It offered fewer customization options; the best we could come up with was the Pavilion 2755C for $1,448 with a monitor.
Compaq
was a little better; we found a Presario 5000 for $1,225.

Shopping the brick-and-mortar retailers' Websites wasn't as straightforward as dealing with the direct sellers. On the BestBuy site (www.bestbuy.com ), we initially couldn't locate a match, but eventually found a Compaq Presario for $1,299 (without monitor). It came with separate CD-ROM and CD-RW drives, and a network card, needed for a cable or DSL Internet connection. We also found an HP Pavilion with separate DVD-ROM and CD-RW drives for $1,149.50. Those prices ignore the $400 rebates, aimed at persuading you to sign up with an Internet-service provider. You should ignore these deals, too, because they hold you captive for three long years, during which time you may want to switch to cable or DSL.

CompUSA (www.compusa.com ) had, right on its front page, a 900MHz Pentium III HP Pavilion with a separate DVD-ROM drive and a CD-RW drive for $1,299.97 (after rebates and savings). By entering our zip code, we were able to see which stores had the model in stock. The price didn't include a monitor; the cheapest 17-inch model cost $299. The site doesn't help you build your own system, or even search for one based on technical specifications.

Several sites do this, however. One of our favorites: CNET's Computers.com (www.computers.com ). We could designate several criteria: maximum price, processor and speed, amount of RAM, hard-disc size, monitor and operating system. We came up with only two, probably because it didn't let us enter Windows ME as the operating system. We've had better luck with this site at other times.

Computers.com also gives CNET Editors' Top 5: in cheap PCs, home PCs and leading-edge PCs. You can also see top picks by price, for your lifestyle and by processor. The site also has a comprehensive list of hardware manufacturers and selling sites to browse.

We fared much better with Active Buyers' Guide (www.activebuyersguide.com ), which offers a similar filtering tool. We could choose our favorite brands, and were asked to pit two potential system and price configurations against one another, and then to select from different systems at different price ranges. After lots of work, we found one of the Hewlett-Packards we'd looked at earlier, and a Sony Vaio. Active Buyers Guide then provided links to suggested shopping sites.

One of those links was mySimon (www.mysimon.com ), which uses a similar search engine, but doesn't let you specify as much detail in your searches. This meant we had to plow through lots of PCs before we found one that met all of our specifications. MySimon does let you factor in some unusual parameters for your search, including whether the vendor offers international and overnight shipping, and whether it charges a restock fee. It also incorporates some of CNET's top 5s, and lets you compare by manufacturer and sort by merchant, price, model and even merchant review by gomez.com.

Not that you have to pay the going rate for a PC. There are bargain sites that may not have exactly what you're looking for, but offer items that are close enough, and for the right price. Pricewatch (www.pricewatch.com ) is a bargain-hunting site that directs you to deals on components and complete systems. While some of these are off-brands, and refurbished or otherwise previously handled hardware, some of the material comes from brand names like Dell. We found some major bargains here, although we weren't able to track down our desired system.

Real bargain hunters also should check the manufacturers' sites for refurbished systems. And don't take these recommendations as the last word, but as a guide to finding the best deals, which at the moment come directly from the manufacturers. That could well change, but given the parlous state of the PC industry, the offers probably will only get better for consumers.

O nce you have your shiny new computer, what do you do with the old one? There are several options beyond passing it along to another family member or friend. The
IBM
PC Recycling Service charges $29.99 (which includes shipping) to recycle the parts or to refurbish it and pass it along to Gifts In Kind International (GIKI). If the PC is used in this latter fashion, you'll get a receipt for tax purposes. Head to www.ibm.com/environment for more information.

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.